Skip to main content

tv   Power Lunch  CNBC  October 11, 2017 1:00pm-3:00pm EDT

1:00 pm
in, $35 a share and all it does is go up, up, up he knows the right thing to do jack ma is doing the same thing with ali baba. the growth struck yur they have rig right now. i much prefer that over amazon baba over amazon >> but you love microsoft? >> yes thanks here is what's on the menu trade and taxes. president trump meeting with canada's trudeau this hour to renegotiate nafta as he gears up to sell his tax plan to middle class americans later on today total devastation out west firefighters struggling to control waging wildfires in california at least 17 are now dead and much of the wine region has now been destroyed getting a lift from uber's recent p.r. problems and its president is here to tell you what next, hop in and buckle up, because "power lunch" begins
1:01 pm
right now. ♪ welcome to "power lunch. i'm melissa lee. stocks are trading in a very narrow range ahead of the fed. at the top of the next hour, the dow managing to hit another record intra-day high. the nasdaq trying for its 11th gain in 12 sessions. apple on pace for its third straight day of gains. it is up in the past weekment a number of big retailers also on the move walmart hitting another 52-week high it is up more than 8%. target, dollar general, the biggest winners in the s&p right now. we begin this hour at the white house. justin trudeau will arrive shortly for a meeting with president trump. trade, the topic eam eamon javers live. >> reporter: not a lot of the
1:02 pm
pomp and circumstance that you see with head of state meetings. we are waiting for justin trudeau to arrive any time now there has been a lot swirling around the bhit houwhite house s morning. the president woke up to an article in which thomas barrack, the real estate investor, criticized him saying the president is better than this. he is frustrated with some of the president's rhetoric no response from folks at the white house. the expectation in the west wing is if there is any response from that, it will come directly from the president himself, a phone call from tom barack directly to the president of the united states the president expressing skepticism on twitter over the broadcast television networks going directly after the nbc news network with all of the fake news coming out of nbc an the networks, at what point is it appropriate to challenge their license? bad for the country. here is the headline he is
1:03 pm
objecting to trump wanted tenfold increase in nuclear arsenal, surprising military the reporting from nbc news is that was the meeting at which trump expressed that view about nuke lars weapons, after which, rex tillerson expressed that he thought the president was, a, quote, moron, unquote. is the president aware the fcc does not grant licenses to television networks. white house officials had no comment on that. what does the president want to talk about he wants to talk about the stock market today he says, stock market has increased by $5.2 trillion since the election on november 8th a 25% increase lowest unemployment in 16 years. if congress gives us the massive tax cuts and reform i am asking for, those numbers will grow by leaps and bounds
1:04 pm
#makeamericagreatagain the president is talking about some of the economic increases under his leadership we will see if there is any news coming out of the meeting later on today prime minister trudeau also meeting with congressional leaders, the topic, nafta. kayla tausche covering that side of the story from the other end of pennsylvania avenue >> prime minister, justin trudeau and foreign minister christie of free land met with the ways and means committee for about an hour. trudeau noting the importance of the committee since it takes the lead on trade. leaving the meeting, trudeau said it went very well in prepared remarks, trudeau touted the volume of u.s. trade with canada and thanked the group for inviting him committee aides say canada requested it regardless of the fact of whom invited whom, the fact of the meeting existing underscores a u.s. alliance. nafta trading partners worried
1:05 pm
the white house might be proposing purposely unpopular demands in this week's nafta negotiations to justify pulling out of the deal. some of those points, called poison pills, would require a higher share of u.s. parts in automobiles, for example, and let any new deal expire after five years president trump, himself, telling "forbes" magazine, i happen to think that nafta will have to be terminated if we're going to make it good. otherwise, i believe you can't negotiate a good deal. perhaps that's why trudeau wanted to meet with members of congress to share canada's fears before facing the president himself. those negotiations on nafta happening about five miles away. they will go until sunday after being extended two extradays we know this is an issue that prime minister trudeau has brought up to the president before they discussed it when trudeau visited the white house in february he made a call to president trump in april at the behest of trump's son-in-law, jared
1:06 pm
kushner, to convince him to stay in the deal. we'll see how much leverage fru d trudeau has this time around for more on this upcoming fight and the slog to get this done, we are joined by austin goolsbee i would argue that for audience, taxes probably more relevant than trade let it start there do you believe despite controlling the house, senate and white house, that the gop will fail to get any meaningful tax reform done at the minimum this year? >> yes at least a two-thirds chance that, yes, despite controlling all of those, they are not able to do it if you specify tax reform the way we always thought of tax reform, like what ronald reagan did where we broaden the base and lower the rates, i think 100%
1:07 pm
they basically just just have given up on trying to pay for the tax cuts they are going to do they are now just trying to figure out what size of tax cut could they pass and how could they put together a coalition of 50% plus one >> alan, i described on "morning joe," the gop is the u.s. men's soccer team of legislation if you know what i'm talking about. >> i actually don't, because i'm not a soccer fan >> a lot of expectation, no result >> it wasn't good. >> we lost last night. the point i'm trying to make as chris kruger and others have noted, there is a chance the gop risks going 0 and 4 on the four big things health care, that looks out. tax reform, maybe not. border wall, uh. infrastructure, looking less likely do you think there is really a chance that's goingto happen >> i think that there is an excellent chance that they will go 0 for 4 to use the idiom from my favorite sport.
1:08 pm
the main reason is that the republican party is tremendously torn by all of these and many other issues too including trade policy this rift between president trump and the more populous wing of the republican party, which after all prevailed in last year's presidential election, and between the washington/congressional wing has never been bridged i see no prospect of it. >> doesn't that unusual instruction guarantee something gets done even if it is very watered down and not quite as potent as first outlined >> that's a great point. will that satisfy the gop base will watered-down, weak victories satisfy the kind of republicans voters in particular that put president trump over the top? there is reason for real doubt about that
1:09 pm
>> let's switch to nafta if we might as prime minister trudeau gets ready to meet with the president. do you think nafta survives? it feels as though the president preel really doesn't want it to? >> the president doesn't want it to the thing i call the trump protocol on policy is that we should not spend more time thinking about trump's policies that he announces than he spent coming up with them. at the end of this sentence, we are going to have a surface the trump protocol i think he has just spouted off ideas. we should put tariffs on mexico. we should pull out of the wto. we should pull out of nafta. i don't think they are actual positions. i think if they wanted to find common ground to revise nafta, they could they could take things that were in the tpp that all three of the countries, mexico, canada, and
1:10 pm
the u.s. agreed to they could make changes like that in nafta. if they are going to force the poison pills, they will blow up nafta. the entire u.s. corporate sector is going to go bonkers if they do that. the stock market, i think, would take a very serious hit in the short-run. there will be chaos in the supply chain of the u.s. manufacturing sector >> alan, austan, thank you very much let's go to dominic chu. we have a big development with regard to the boy scouts of america. today the board of directors nationally has unanimously approved to welcome girls into its iconic cub scout program and deliver a scouting program for older girls that will enable them to advance to the level of eagle scouts for the boy scouts of america, another big development here we should say that according to randall stevenson, the chairman of at&t, who is also serving as
1:11 pm
the boy scouts of america national board chairman says the record of producing leaders with high character is amazing. he was adamantly in support of allowing gay scouts to come in the bsa has offered co-ed programs since 1971. the next big step with regard to the kind of integration of genders, so to speak, in one of the most iconic organizations in american youth >> does this mean that girls can become boy scouts or there will be programs for girls within the boy scout rubric they don't necessarily become boy scouts or cub scouts >> cub scouts will have girls and boys and allow a progression where boy scouts have this eagle scout designation, the highest level you can get. it will allow girls to progress to that level. so i guess you can say within the overall construct of the boy
1:12 pm
scouts of america, girls can be part of that >> you were wondering would girls be called boy scouts would a girl say i'm a boy scout or would it just be a scout. >> the cub scouts are for younger kids, right? then you graduate up if you are male, you go into the girl scouts from what, the brownies >> i was not only a boy scout, i lived in a tent for three months teaching boy scouts in west virginia, three months in high school, mostly to get out of the house. >> what happens when the cub scouts graduate up a female cub scout, they become members of the boy scouts or scouts they will rename it and call it tapestry >> this also happens on the international day of the girls the timing is interesting. the girl scouts of america, i just economiced the twitter feed no word on reciprocal privileges for the girl scouts. >> the head of the world's
1:13 pm
largest money manager shares his tape on where the money is right now. bob pisani joining us on the new york stock exchange. more on what larry fink had to say this morning on "squawk box. >> the important thing is mr. pink came on and said, there is a lot of money still sitting on the sidelines. he mentioned particularly in japan and germany. overall, it is good to be the biggest asset manager in the world. look at the stock, folks this is a historic high. the numbers were really good i want to show you some of the numbers a little bit below the headline numbers the situation with revenues are up 14% this is the biggest asset manager in the world asset manager up 17% that's a lot when you are the biggest guy in the world how would you like to have margins of 45% total etf. 1.6 fritrillion how much is that that is about 55% of all the etf assets in the world. they are in a big fight with vanguard over pricing.
1:14 pm
right now, let's just say black rock is doing darn well. let's show you a couple other movers mcdonald's caterpillar, boeing, visa, what do they have in common, all-time highs, all of them we are seeing multi-year highs in all the other names a quick note on banks. they are a little weak usually, a day before we go into the earnings season, starting tomorrow, with the banks, you usually get some weakening as the numbers are announced. this is what is happening today, although not to any great extent back to you. >> the g.e. story is very interesting. >> please, pick up >> in terms of the possible difficult dividend cut the dividend remains a top priority it is not necessarily saying we are committed but saying it is a top priority among other priorities presumably. >> remember what exxon said, remember what chevron said
1:15 pm
people owned these primarily for the dividend, because they abandoned any hope there would be an increase in oil. people have abandoned general electric hopingthey are going to turn to companies around regardless of the personnel changes. people own it for the 4, 4.5 dividend yield there is an echo with what the oil company said everybody is owning it for one around one reason only what are you going to say? the dividend is not under review the dividend is not under review management may be. >> bob, thank you very much. tyler, that may be a good metaphor 16% of g.e.'s revenue is oil and gas. they were buyers when everybody else was a seller. a news alert in the bond market ten-year up for auction and santelli, what's the demand, rick >> b minus boy minus. so it was above average auction, the second of the day, i might add. in particular one, 20 billion,
1:16 pm
nine-year, you could call them ten-year notes the grade, b minus, yield, 2.346, pretty spot on. pricing counts a lot the other aspects were actually pretty good. 2.54 bid to cover. that's since march of 17 that was this year 69.1, indirect the best since january of '17 this year. 6% versus 7% ten auction average on direct was a little light dealers take shy of 25%. we have everything out of the way. 12 billion, 30-year bonds tomorrow auction not going badly. this was the highest yield at an auction since march of this year if you recall, we had to go back a couple years with the three-year notes that's because the curve has flattened. tyler, back to you >> the deadly wildfires continue to burn out of control in northern california. beyond the human toll, quoucouns
1:17 pm
homeanmas d ny businesses have been destroyed after the break, we will talk to a winemaker in napa. ♪ it's not just a car, it's your daily treat. ♪ go ahead, spoil yourself. the es and es hybrid. experience amazing. whyour boss?ork for? yourself?
1:18 pm
your family? our financial advisors are free to realize a plan to fit your family's unique needs. we'll listen. we'll talk. we'll plan. baird.
1:19 pm
despite the best efforts of many brave firefighters, the wildfires in northern california continue to grow 170,000 acres burning, 70 people
1:20 pm
are confirmed dead and 3500 structures have been destroyed aditi roy is live in napa with more >> reporter: we are standing in front of one of those 3500 structures this is a winery here in napa. it has been leveled. the rubble is all that remains here it is one of five wineries that have been destroyed or damaged by the wildfires that list could grow even longer as there have been more evacuations overnight. across napa, dozens of rest t r restaurants and wineries remain closed if you look at the list, you might notice a lot of familiar and iconic names here in the napa valley like the meadowwood resort as well as carnaros resort and spa and silverado among the wineries, you could also notice familiar names like
1:21 pm
bearingger all of this having a big impact on the tourism economy this is a very popular time of year for people to travel to napa the wine institute says that california's wine industry generated $114 billion in economic impact in the u.s. last year alone we talked to a winemaker in sonoma >> this threw a little bit of a curveball in our model we hope people are aware of what's happened and they come and taste our wines and enjoy them and that our sales will continue to grow >> reporter: he says the silver lining for him is that most of his harvest was already brought in that's what we are hearing >> what does impacted mean what does that mean? >> reporter: a lot of these businesses are closed because of
1:22 pm
power outages much the french laundry was closed on monday because of a power outage and because of road closures people can't get to these businesses >> that does not necessarily mean they have been destroyed like the building you were standing in front of >> exactly >> reporter: this is pretty unusual. >> gotcha. joining us on the news line, napa valley winemaker, john hoffliquor with alpha omega winemaker in california. how have you and your business been affected? >> we have a long power outage that forced us to go back to traditional winemaking and rethink a little bit the way to make wine the old style. that forced us to change a lot of the operation most importantly, i think we are focussing on helping the community and making sure the lives of others are a little bit better through our efforts, helping our workers.
1:23 pm
their families and friends and find a bed and a shower if we can and try to help as much people as you know >> the human tragedy of the loss >> like a big spike in pollution, in any major city, the quality of the air is really the problem right now that is affecting tourism mainly somehow the grapes but the
1:24 pm
grapes at this time of the year don't have permeability. the vintage is quite stunning and the quality is there without struggle, you don't have great success. we hope for the best of the vintage. tourism is down because it is very hard to breath. within two or three days without the fire, that problem should be solved >> first of all, best thoughts and prayers to you and your family and friends and everybody affected we talk about the business side. the estimated retail value of the california wine crop annually is $34 billion. this is a massive industry how long does it take to get a vine back up to where it is mature enough to grow a wine grape? all i know is about the philoxra grape of a century ago how long will it take some of the vineyards to physically recover? >> vineyards are great fire
1:25 pm
breaks, because the only thing that can really burn within a vineyard would be grass that gross and farmers actually mow these. as soon as a fire reaching a vineyard, usually, it stops. the plant itself is green material and there is really nothing to burn. if it did on the side of the fire the portion of the vineyard closest to the fire, if we were to replant, it would take three or four years to start having crop again >> good luck to you, john hoefliger, with alphaomega vineyards. we'll talk to the second analyst about johnson & johnson who has upgraded the stock will the same be true when the airlines report. "power lunch" will be right back
1:26 pm
i've always wanted to create those experiences for others. with my advisor's help along the way, it's finally my turn to be the host. when you have the right financial advisor, life can be brilliant. ameriprise
1:27 pm
1:28 pm
delta up just end a percent. our phil lebeau spoke with them this morning >> they are optimistic delta earning 1.57 a share and revenue, 11.06 billion a little better than analysts were expecting in terms of passenger revenue, there was an impact from hurricane maria. it cost the company about $120
1:29 pm
million. up 2%-4% ed bastian says they are seeing strong demand on the international routes and the question of delta's order for bombardia c series planes. they want to spl the commerce department wants to slap a 300% tariff on them and said they apparently dumped them and this entire argument according to ed bastian, is absurd >> it is great innovation, because boeing did not have a product to compete with. they went the government route >> reporter: will you give me a price? >> i will not. >> ed bastian would not tell us what price delta is paying for the c series planes. the first will be coming in early next year. this is not a final ruling from the commerce department. we have not heard the last of this it is in negotiation
1:30 pm
certainly one delta investors will be watching very closely. >> phil, thank you johnson & johnson is getting its second upgrade this time from jeffrey, upgrading to a buy, raising from 157 from 145 joining uses now, jeffrey holford. >> thanks very much. >> you bowled up on the phrma division how important was the italian acquisition to that? >> it is certainly part of the reason i think our numbers were ahead of street. italians are very interesting in the way they bought this they are not taking on all of the r & d infrastructure some of the accretion will be delivered more quickly than normal they have some nice products they can leverage. one of the biggest drivers of our grade today is the products that were already in j & j, particularly the oncology division which is really where our view of the company is most differentiated right now
1:31 pm
>> you also site terades, an akron ni acronym for seven major drugs they have out there. in terms of where you are, there is a big discrepancy there what do you think the street is not appreciating is it just oncology drugs or another drug within the akron nick that is not being appreciated? >> i think it is a whole bunch of things. j & j is who are historically looked at by medical device analysts and pharmaceuticals is the biggest growth driver and profit center. that's where some of the attention has been lacking for the company. they provided a very good r & d update hard-work on many of the assets the company is talking about it is partly new it is also how they are protecting and extending their existing franchises, in infectious diseases and
1:32 pm
schizophrenia where they are not paying attention some of the new assets, in stage three, late stage development, don't appear to be in consensus. if you look at any one particular asset, it is very hard to get excited about the company overall. one asset can't leverage much inxrei incremental differences. if you take a look at the entire portfolio, there is a lot to be gained on the up side. >> are you worried about the liability tracing back to the talcom powder or any other product liabilities that they may face >> i think that's always an issue for many of the companies that sit in the background i know there has been some very significant awards made in hearing so far on talcom they have won some, lost some. they are going to be appealing the ones that they have lost when you look at the balance of the scientific evidence out there on talc, the big studies don't really appear to have shown any connection to cancer we are going to watch that very closely going forward.
1:33 pm
obviously, this company has a tremendously strong balance sheet and can probably deal with any significant liabilities that come up. we are pretty optimistic that that won't be too much of a majori issue for them. >> what are the odds of j & j buying pfizer's consumer health business blchlt business >> we think they would have a good interest in that company. johnson & johnson is certainly an attractive asset for them there are other players like racquets there this is going to be quite a hot deal if it does come out to play j & j would have a significant interest in that >> thank you, jeffrey holford. lyft taking a major bite out of uber. we will talk to the press. two "power lunch" success stories. more clsal on the sfreet ytreet
1:34 pm
need to know about, including a big one on facebook. at fidelity, trades are now just $4.95. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.
1:35 pm
1:36 pm
hello, everybody
1:37 pm
i'm sue herera here is your cnbc update for this hour. north korea's foreign minister says president trump with his bellicose and insane statement at the united nations has lit the wick of war with north korea. he made the comments in an interview with russia's news agency house speaker, paul ryan, says congress is ready to act to protect states dealing with natural disaster ranging from the hurricanes to the wildfires in california. the house will vote to add disaster relief funding of more than $36 billion >> like we did with katrina and new orleans, when a local government gets their tax based wiped out, there is a loan program to help replace that that's something we just added to this bill their tax base has been wiped out. just like we did with respect to katrina. >> the boston red sox have fired manager, john farrell, after one playoff win in the last two years with the addition of high
1:38 pm
price stars, chris sale and david price. he managed the red sox for five seasons, winning the world series in 2013 that's the news update uber's problem may be giving lyfh lyft a lift. deird deirdre bosey is live. >> congratulations it took is about five years to get to half a billion rides. uber celebrated this year and have a much larger presence but you are making significant strides. what do you need to do to keep the momentum doing >> we are going to keep doing what we have been doing. it took us four years to hit the first 100 million rides. we did that in the last three
1:39 pm
months we are moving incredibly fast. by focusing on our drivers treating them well and our passengers providing them with the best customer experience, we are going to keep making progress >> is that how you have differentiated yourself? >> i have been around for five years. my background is in hospitality. if you take care of your people, the business will do well. >> i want to talk about softbank they have emerged as a major player they have made a big bet on dede he has says he is interested in uber or lyft are we going to see more consolidation in the ride sharing space. >> there is going to be continued growing excitement for what's happening in our space. every year, $2 trillion is spent on car ownership we use our cars only 4% of the time it is really inefficient that spend will tran
1:40 pm
significance from car ownership to people accessing cars as a service. >> do we see more consolidation with all the money spread out in the sfas and hapace and have yoh masa >> i don't know that we will see more consolidation in the near-term. i have seen him in passing at a conference but not formally. >> we are going to talk about ipo. there are reports that you are getting xlo getting close to selecting an ipo adviser. uber says it will go public by 2019 >> we will go public when lyft is ready and nothing else to announce >> with uber coming out with a deadline by 2019, does that put more pressure on lyft? are you feeling that from investors or employees >> i don't think putting a deadline is appropriate. i think doing the right thing for the business at the right time based on what's happening internally and in the external markets is how that decision should be made
1:41 pm
>> melissa has a question back in new york. >> hey, john it is melissa lee at cnbc. we want to ask about the g.m. partnership. they have a 9% stake when should we expect to see self-driving lifts >> jim has been a great investor our self-driving strategy is two-fold we are creating an open platform think of lyft as a network, like at&t where people launch different devices on it. that has allowed us to sign up multiple partners that will be testing their autonomous vehicles over the next 12-24 months we are building our own self-driving system so we learn about how to build it and make sure we have access when it comes to full fruition >> if i'm a user of lyft, when can i hail a ride and get into a
1:42 pm
car with no driver in it i am sure a lot of drivers are listen t listening to this very closely >> we are not announcing a specific date. to the point about drivers, we don't believe there will ever be a need for less drivers. even in a autonomous world, you have just .4% of miles traveled are on these networks. as we move towards transportation, there will be a lot more need for drivers and in a fully autonomous future, you may say, what if the car is only driving by itself and that's what everyone wants, when you have six or eight or ten people in the car, you are going to want host ns ths in that vehicl, there will be a greater opportunity for jobs in the future >> we will keep bugging you for that date. we will see when it is going to happen i am sure there are a lot of passengers out there curious >> no more pink mustaches on the cars that is key.
1:43 pm
deirdre bosey, coming up two big power lunch stories. companies you first heard about right here one of them just made its founders very, very rich the american dream is alive and well on "power lunch." we roll on it with it right after this [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock.
1:44 pm
flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income.
1:45 pm
that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. you have seen this product on "power lunch. the rx bar we were told a package redesign gave a huge boost to sales >> it changed the game >> the product, itself, is the same >> the product is always changing in a positive direction. it is a combination of a great product. >> can you quantify how much sales have changed how much have they gone up >> 700 plus percent jump in sales. >> fast forward and that guy and
1:46 pm
his investors are getting a bigger boost, to the tune of a $600 million buyout from kellogg? joining us, peter rahal. it is okay to smile. you are a millionaire now. you have launched the american dream, buddy congratulations to you and your team and investors and all of your employees, seriously. how did this deal come about take us through it >> first, thanks for having me on we have always looked to serve the best interest of all stakeholders o we are always looking for growth and the right partner to accelerate and keep the trajectory going we started talking to kellogg and it was the right fit, totally aligned on values and how we work. it was kind of a no-brainer. >> $600 million? are you going to stay with the company, peter >> i will remain and get to keep my job and the whole company will remain intact we will be a stand-alone company within kellogg's we are excited to continue to
1:47 pm
grow to the next chapter >> no more o'hare. i understand you are going to b on the g-5 or the g-4. good for you, buddy. how much money did you make on this deal? how rich are you, now? >> i have financial freedom. i'll just say that >> that's a good answer to a nosey question, brian. >> i knew he wouldn't answer but i had to ask him >> i get it. in terms of what does kellogg bring to the table in terms of distribution, what does this mean for the product, itself, and the changes in the growth of the product? >> kellogg will provide us with a ton of muscle, both in-store execution, distribution, international expansion and then another key attribute on the r & d side, continuing to improve the product and with innovation. those are the two big kind of support roles being with
1:48 pm
kellogg. >> peter rahal, rx bar hopefully, "power lunch" played a tiny, sliver of a role in that we congratulate you and your entire team. literally, the american dream, buddy. thank you very much. keep us up to date in how you are doing and what color you decide to paint the plane? >> thank you we will do >> tyler >> from one "power lunch" success story to another encore golf first appeared on "power lunch" about three years ago, 2014, trying to sell their wears on the power pitch >> jack nicklaus once said, a perfectly straight shot with a big club is a fluke. we are here to change that by optimizing the only piece of equipment you use on every single shot, the golf ball this is what you have been using. this is what you will be using for the next 30 years. >> the company has come a long way since then the ball is now used on the lpga, pga tours and they just announced a new product called
1:49 pm
the genius ball. joining us now is brett blakely, co-founder of on encore golf our genius in golf is dom chiu he was here to >> the technical part was a metal core >> it was a hollow steel core. it effectively removed the mass shifting all the way to the perimeter, creating a shot dispersion than any ball had seen >> straighter? >> 20%-30% straighter. it was pretty groundbreaking. >> if you look at the overall picture, the next step you took was to create this genius ball take us through what a genius ball involves. >> leveraging the hollow core technology, what we have done is effectively embedded electronics within that. other ball manufacturers have looked at that possibility but because they didn't have this
1:50 pm
type of core, it couldn't take the impact, upwards of 15,000 g-force. a ball compression would bust up the electronics. we found we had that capability through our testing. we thought, first off, let's put gps in the ball and in the balla trackable ball, and why stop there? let's create electronics to track the ball through every stage of its movement and brin back the distance to the, you know, to the flag, expand it beyond that so that you're grabbing spin rate you're grabbing trajectory and velocity and bring it back to your mobile device in realtime >> so what i will be able to do is not lose a ball in the woods because i will be able to find based on the gps roughly where it is. >> absolutely. you're not spending the afternoon in the rough >> oh, i don't know about that, but at any rate, i'll be able to find the ball that i've hit in the rough. >> yes >> is it usga sanctioned yet or not? >> no. the ball itself prior to the
1:51 pm
electronics in terms of the ball performance, yes, but with the electronics it does not meet the regulations put out by the usga. >> but you've got to remember, too. >> i don't care about that what i care about is not losing my shots >> this is all about the golfer that wants realtime analytics, that wants to dissect their golf game in a way that's never been able to happen before. we have a technology and sport the golf industry has never seen anything like this, and to be able to see that data at their hand is truly groundbreaking >> is there such a thing as too much data and you've got so many data points now, you have tailor made and cobra with the cobra connect tracking everything. is there too much data for the golfer out there right now >> i don't think so because that's what everyone is searching for. you go into a shot simulator and you go g to the golf galaxy and
1:52 pm
hit it against a screen three feet in front of you because you want to understand every component of the game and not only is it interesting for the geeks of golf that want to know the game better and it's fun for the competitive nature of it think about having four of your friends on a foursome activate their genius ball on to your app and each of you can bet shot for shot >> you can bet your spin rate and all of that. >> but give us some numbers and give us numbers on this business where are sales? how fast are they growing? are you making money and what is your endgame besides putting the ball in the cup? is it a sale to somebody or what give me some numbers. >> sure. we've doubled in growth every single year and we have 2.5 growth this last year and we've done this all with very little resources in an industry that's domi dominated by billion-dollar goliaths and we've led through innovation and technology since day one. the exiting thing that's cat
1:53 pm
pumented us into the stratosphere is the golf ball the elixir we launched it last year want only did we have players on the four major tours switching mid season and a hometown shoutout to bill gaffney he broke ben hogan's 70-year-old record at brookfield country club who shot a 64 bill gaffney shot a 61 with it, so the excitement level over this tour ball and what it's been able to do has been something that i think is just catching fire and we're getting attention and acknowledgement from players at all skill levels and especially at the elite levels and this company is really just headed for something great. >> we've got to leave it there up against a break appreciate it. >> geniusball.com. >> geniusball.com. melissa? the four wall street calls you need to know about that's next. and? >>by the time they got me an answer, it was too late.
1:54 pm
td ameritrade's elite service team can handle your toughest questions right away- with volatility, it's all about your risk distribution. good to know. >>thanks, mike. we got your back kate. >>does he do that all the time? oh yeah, sometimes he pops out of the couch. help from real traders. only with td ameritrade. you know win control? be this guy. check it out! self-appendectomy! oh, that's really attached. that's why i rent from national. where i get the control to choose any car in the aisle i want, not some car they choose for me. which makes me one smooth operator. ah! still a little tender. (vo) go national. go like a pro.
1:55 pm
1:56 pm
big wall street calls. hiking the price target and analysts there sees a long runway of high teens revenue growth facebook ending a price target hike over at credit suisse the street says it is underestimating the potential of upcoming new products. luke capital upgrading msg networks to a buy and that's 17%
1:57 pm
upside and free cash flow growth should help debt ratios and nvidia getting a positive call on the street and goldman sachs is upping its price target to $2.17 from $193 and that stock is up by 0.1%. it is being called the worst period loss in the history of u.s. soccer. the epic fail that booted america from the world cup former u.s. team member taylor twillman will weigh in his post-game rant has gone viral, plus breaking news from the fed. it could be a market mover the minutes coming out in two minutes' time. "volatile markets." something we all think about as we head into retirement. it's why brighthouse financial is committed to help protect what you've earned
1:58 pm
and ensure it lasts. introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. while maintaining a level of protection in down markets. so you can head into retirement with confidence. talk with your advisor about shield annuities from brighthouse financial established by metlife.
1:59 pm
2:00 pm
federal reserve officials say in their minutes that they think an increase in the target rate later this year is likely to be warranted, but a smaller contingent said it was data dependent and a smaller contingent said still, you know what rate hikes should wait until it's on a path to a 2% goal. all agreed that they were in favor of a gradual rate hike increases and there were substantial debates in the september meeting over inflation and over wages on inflation, most forecasts that inflation was headed toward 2%, but they conceded it may
2:01 pm
take longer than anticipated many judge softiening of inflation and there were worries about persistent forces with keeping it low patience in removing a com dags was indeed warranted and a few thought no further increases were called for. remember, that's a smaller contingent of the whole and there are strong feelings on both sides of this issue when it comes to inflation, and expected with just a pickup over time, but several said the absence of wage pressure meant they have to sort of rethink what the lowest unemployment rate for the economy could possibly be. a couple cautioned on the other side here that acceleration may already have begun in wages and they have to be careful of higher inflation because of that finally, guys, the fed largely expected the hurricane effects on payroll so there wasn't much concern there and much difference in the outcomes from the hurricane data that they've
2:02 pm
seen so far or to that point so a big debate on inflation and a big debate on wages and ultimately they decided to hold off and kind of signal a rate hike was coming. maybe the outcome of this is a little bit more dovish than i would have otherwise thought going in guys >> stay right there. danielle di martino booth and now president of money strong. do you remember when the fed made their decision the last time, right? and we went around and it was hawkish, hawkish, and i said it sound a little duffish i just called him fed, steve came to the dovish fed, you heard the headlines and how do you read them? >> just listening to the headlines a lobe they validated the december rate hike and that's to me the bottom line of the minutes and they know the markets are fully priced in over 80%. the december rate hike probability so despite all of the noise in the data they're pulling forward with it. i think clearly we heard neil
2:03 pm
cash carry's voice come out of those minutes because he has been adamant and vociferous and public and saying inflation is too low. >> some of the officials and i'm just scanning through it here and by the way, the word inflation, and i did a word scan mentioned here than in the last one, but some fed officials did not believe low inflation was transitory in other words, low inflation may stick around how can we read that as hawkish? >> well, you can also read that a different way, and that's that they're going to let the unemployment rate cruise well past 4% and it's justified a lower unemployment rate is now justified if wage growth is not going to answer in turning up, despite the 2.5% -- >> and usually it's wage growth that create inflation. so the two are married side by side so, steve, let me reprieve what you said a moment ago that the consensus was that an increase was likely do i hear that to say a december increase is likely
2:04 pm
>> likely this -- >> one group saying data dependent and the second group saying wait for inflation. >> i walk away from these minutes thinking the consensus is where i thought the consensus was which is the rate hike this year, but i have to say the new information to me is that the size of the opposition or the skepticism or the minority party in this regard is a little bit bigger and has their heels dug in a little bit deeper than i previously thought. >> this is the dovish minority >> where are four of the 16 dots that were not in favor of the december rate hike >> can i interrupt for just a second we have headlines from the president and he is meeting with justin trudeau trump asked if nafta is dead we will see what happens we have a tough negotiation. it is possible to do a deal on nafta, but the u.s. has to protect workers and trump with candidate trudeau in the oval office says if he can't make a deal on nafta it will be terminated so some tough talk coming out. we're expecting the tape to
2:05 pm
come as soon as we get that we'll roll that so we can get the full context of the comments, but that's what we have so far some tough talk when it comes to nafta as it enters a difficult stage negotiations at this point. >> as we go to the dot plots that we talk about, and every fed member -- >> i don't think you are allowed to say that on tv. you've said it twice it kind of looks like that, too. basically everybody puts a dot where they think interest rates is going to be it's not that complicated. this year there's only three levels and next year, there are two members who think rates will be where they are now and there's one member who thinks rates are going to be above 2.5% the point i'm making is the expectations within the fed itself for next year are literally all over the plot. >> right >> and i don't want to make this more complicated than it needs to be, brian, because ultimately i think the data will lead the fed towards the policy here, and i think if you get a couple more
2:06 pm
inflation reports before the december meeting that are below what is the expectation or indicate persistent and broad price -- not modest pricing pressures, i think you'll have a few more converts and that rate hike could be off, and i think the market will smell that out the cpi, i think is friday morning i think when it comes out and that will be a important report for market expectations and it will be an important report for the fed and there are enough guys that are in the middle here that if you don't get the inflation data, i think the december rate hike will be off. >> so, steve, that's true when it comes to future rate hikes, but the fed has also told us that the rolloff of the balance sheet and the reduction in the size of the balance sheet as slow as that's going to be, that process is going to be is not data dependent >> that's one thing they've done, and by the way, i think that was an important lesson from the temper tantrum, right
2:07 pm
which is the market took the balance sheet to be signaling what was going to happen with rates. what the federal reserve has done and they've done a good job separating those two and it's gotten away from announcing the whole plan to reducing the balance sheet with very little market reaction. >> it will be interesting to see how the ecb in a few weeks plays into this dynamic if we start to all of a sudden have one, but not two central banks in a sub-tightening mode here >> danielle di martino booth, thank you. steve "fed head" liesman, he loves the dead two big discussions for the biggest risks to the market. larry fink breaking down his rate concerns. >> my greatest fear and i'm not giving you a high probability on it, but there is certainly some probability in it is that we have a very aggressive federal reserve. right now people are assuming
2:08 pm
another tightening this year and another three next year. could we see an inverted yield curve in early 2019? we want to avoid an inverted yield curve. >> last night on fast money, fortress investment and former fortress investment director telling me why he is concerned about the markets. >> the rest of the world worries me a little bit. we have a president that seems to be a bit of a maniac, to say it nicely and putting a lot of political risk in this system. we've got debt to gdp at an all-time high when the fed is raising rates and going to start sucking liquidity out of the system and in qe >> let's bring in anastasia om rosa and the chief investment officer with greenwich wealth management thanks for being here. anastasia, i'll start it off with you we have a litany of market concerns, do you add on to that persistently low inflation which is what the fed is worried about
2:09 pm
right now? >> i actually don't. it's kind of interesting that they focus so much on inflation and not meeting the tradition alg rules for why inflation should rise because it seems to me that we are actually seeing that inflexion point and we are looking forward to firmer inflation in the months and the next year to come. i think a lot of factors will be driving that going forward first of all, the impact of the weaker dollar earlier in the year does boost import prices going forward. second of all, oil prices have had a big rally in the last few months and again, that does prop up overall inflation so i do see reasons for inflation to rise and we're seeing that in some of the fed surveys. if you look at the prices paid indices, they're absolutely rebounding, so i wouldn't say low inflation is the key concern here i would add to the discussion that we had earlier that maybe this is on the dovish side, the fed minutes and i would say this would change in the next few months when the new fed comes in. >> i think that's a great point.
2:10 pm
>> some of the dovish fed dots will be replaced by hawkish dots and we have to account for that. >> those dots that brian likes to talk about. >> i don't want like to talk about them, but they exist >> they disappear or they change. >> it's a great point. so do we ignore it then? >> a dot's a dot so -- so pick up on what anastasia just said, and that is that the composition of the fed is about to change we know that, and i wonder whether some of that is reflected in what we just heard in the minutes that there's a tide a change in there, and how do you see it as we move into 2018 and beyond. new fed chief potentially? certainly a new fed vice chair >> yeah. i think we will have a new fed chief and it is pretty clear that trump does not want to reappoint janet yellin, and i don't think he wants to appoint gary cohen, and we will have
2:11 pm
somebody new and more aggressive, but i'm not concerned about the fed being too aggressive i do expect inflation to rise. i do expect wages to rise, and i think that the fed's actions will be counterbalanced to a bit by regulatory easing and tax reform so in my opinion, i think the biggest risk to the market right now is tax reform, not the risk that it gets done, but that the risk that it fails to get done >> that implies there is a premium within the market already because of tax >> i do believe there is i think the market is overvalued >> i think if tax reform fails we could see easily a 10% sell-off >> okay. >> i get your point and i'm not even going to agree or disagree. why haven't we seen, then, a drop in markets when it does look very unlikely that anything will get done this year and when you're screaming at a senator like corker on twitter, why should we assume it will get done next year there has been no fluctuation in
2:12 pm
the markets based on the declining probability or seeming declining probability. >> because despite the twitter risks that we've seen coming out of the white house and the animosity between corker and trump, i think investors largely believe that they'll agree to something and it will get done corker is not going to stand in the way of meaningful tax reform as long as it doesn't add to the deficit. >> i'll take the other side of the argument and i will say that i don't think that the success of tax reform is priced into the market if we look at some of the beneficiaries of tax reform, they have benefited in september, but after a pullback earlier in the year. so to me, that's not where the market is moving on. to me, it's back to inflation and it's back to the stronger dollar and the rotation that you've seen in september has everything to do with that so you have seen u.s. domestic outperformance in september, and i do expect that to continue if we get tax reform on top of
2:13 pm
that i think that's another catalyst for the stocks to benefit. >> an stashia and jahan, appreciate it. the boy scouts of america say they will welcome girls into the cub scout program and will develop a cub scout program for older girls that would mean they can earn the highest rank of eagle scout. nbc's pete williams joins us now with more. >> it's a big change, but the scouts say they're not going to go co-ed next year they'll allow young girls to become part of the cub scouts and the local units can either have a program for girls or a program for boys or both, but each will be separate. no co-ed programs and then starting the following year in 2019 they'll allow older girls to enroll in the same program as the boy scouts and that will enable them to reach the rank of eagle scout. coincidentally this comes on the u.n.-declared international day of the girl that the boy scouts make their announcement. they say the board of directors was unanimous on this and it
2:14 pm
reflects the changing nature of the american family where they want to take the boys and girls to the same place to engage in scouting >> pete, thank you very much we will break in there because the president is speaking with canada's prime minister justin trudeau. listen. >> we are here with a man who has become a friend of mine, prime minister justin trudeau and mrs. trudeau, thank you so much appreciate it. and we are discussing many things, including nafta, but we have discussions scheduled for quite a few subject, and i think we look very much forward and it is a great honor to have you both with us thank you. thank you very much. >> thank you great to be back here in the oval office. the as the president said, we have a lot of things to discuss. we have an incredibly close relationship and two countries that are interwoven in our economies and our cultures and our peoples, but we have a good
2:15 pm
partnership and there are always ways to improve it and always issues we need to talk through and that's why having an ongoing, constructive relationship between the president and the prime minister is very important and i am glad to be able to meet with you today. [ speaking foreign language >> we'll see what happens. we have a tough negotiation, and it's something that you will know in the not too distant future, but we are going to be discussing nafta, and we'll be discussing defense because we have a great -- these are great and original allies and mutual defense is very important. and i guess we'll also be discussing mutual offense which people don't mention too often, but offense is part of defense so we have many things to talk about, but nafta will certainly
2:16 pm
be a big factor today. okay >> did you discuss the nuclear arsenal? >> no, i never increased it. that was fake news by nbc which gives a lot of fake news lately. no, i never discussed. somebody said i want ten times the nuclear weapons that we have right now. right now we have so many nuclear weapons. i want them in perfect condition and perfect shape. that's the only thing i've ever discussed. general mattis put out a statement or is putting out a statement saying that that was fake news and it was just mentioned that way and it's frankly disgusting the way the press is able to write whatever they want to write and people should look into it. no, i want to have absolutely perfectly maintained which we are in the process of doing, nuclear force, but when they said i want ten times what we have right now, it's totally unnecessary, believe me because i know what we have right now. >> you want no increase
2:17 pm
whatsoever >> we won't need an increase, but i want modernization and total rehabilitation it's got to be in tip top shape. [ inaudible question ] >> well, i don't think anything changeded. we're negotiating a nafta deal and it's time after all of these years and we'll see what happens. it's possible we won't be able to make a deal and it's possible that we will we have a great personal relationship and we have a relationship now as two countries, and i think that's as close as ever, but we'll see if we can do the kind of changes that we need we have to protect our workers and in all fairness, the prime minister wants to protect canada and his people also. so we'll see what happens with nafta. i've been opposed to nafta for a long time in terms of the fairness of nafta, and i said we'll renegotiate and justin understands this if we can make a deal it will be terminated and that will be fine maybe that won't be necessary,
2:18 pm
but it has to be fair to both countries. [ inaudible question ] >> no. the press should speak more honestly i've seen tremendously dishonest press. it's not even a question of distortion like the question that was just asked before about ten times the nuclear capability i know the capability that we have, believe me, and it is awesome. it is massive and so when may make up stories like that, that's just made up and the generals will tell you that and then they have their sources that don't exist, in my opinion. they don't exist they make up the sources there are no sources any other question [ inaudible question ] >> we'll decide over the next fairly short period of time, but i think it's going to work out very well for both countries and mexico >> what did you do about the iran deal? >> we'll be announcing that very shortly. [ inaudible question ]
2:19 pm
>> what? [ inaudible question ] >> oh, sure. it's possible we won't be able to reach a deal with one or the other, but in the meantime we'll make a deal with one, but i think we have a chance to do something very creative that's good for canada, mexico and the united states. >> so do you want to see nafta survive? [ inaudible question ] >> you mean last week? >> john, you are so far behind the times? today or last week because today i didn't have lunch with him no i had a lunch last week and we had a very good lunch the we have a good relationship and the press doesn't understand that, but that's okay. we actually have a very good relationship what else? >> i think i have a little bit different attitude on north korea than other people might have, and i listen to everybody, but ultimately my attitude is the one that matters, isn't it that's the way it works. that's the way the system is, but i think i might have a
2:20 pm
somewhat different attitude and a different way than other people i think perhaps i feel stronger and tougher on that subject than other people, but i listen to everybody, and ultimately i will do what's right for the united states and really, what's right for the world because that's really a world problem it's beyond just the united states that's a world problem, and it's a problem that has to be solved. thank you very much, everybody thank you. thank you. [ indiscernible >> we've been listening to taped playback of the president just off his meeting with canada's prime minister trudeau talking about everything from nafta saying that we will see what happens with nafta, a deal without mexico and only with canada is a possibility and also continuing his war on media. today nbc seems to be in the president's crosshairs and also talking about the possible desertification of the iran deal let's go to eamon javers in d.c. with his take on this. >> eamon >> melissa, a lot to cover
2:21 pm
there. the president doesn't want to be pinned down on specifics of what he intends to do vis-a-vis nafta although he's sitting alongside the prime minister of canada there and also on the iran deal saying we'll find out what his decision is in terms of decertifying the iran deal or not. shortly, but not indicating one way or the other what his decision will be on the issue of the u.s., as the president likes to do, hitting out against the press from day to day saying it is frankly disgusting the press is able to write whatever it wants to write. the president today going specifically after nbc news and flatly denying that he at any time said he wants the nuclear arsenal of the united states to be increaseded by a factor of ten saying he didn't do that he simply wants the nuclear arsenal to be modernized he says the united states -- and
2:22 pm
general mattis backing up his version of the events. that is something to keep an eye out on for the rest of the afternoon. >> eamon javers at the white house. has the death of the mall been greatly exaggerated the owners of one of the largest shopping centers in the country gives us a retail reality check and taking stock with teens, a new survey breaks down where they are shopping and where they're tieang the results may surprise you
2:23 pm
2:24 pm
2:25 pm
the fall of disgraced movie executive harvey weinstein as more details emerge. julia boorstin joins us from los angeles and it seems like revelations are coming out on an hourly basis >> absolutely, brian the list of women accusing harvey weinstein of sexual harassment continues to grow gwyneth paltrow and angelina jolie, rose mcgowan and and the list of high-profile names denouncing weinstein's behavior is also growing. president obama, hillary clinton, bob iger and jeffrey katzenberg among those speaking out against weinstein.
2:26 pm
the allegations come as a surprise to the board and any suggestion that the board had knowledge of this conduct is false. we are committed to assisting with our full energies in all other criminal investigations for these alleged acts while pursuing justice for the victims while pursuing an independent investigation of our own in addition to the cost of the investigations of the scandal that could run into the tens of millions of dollars and this is starting to take a financial toll tmz reporting that ai international holdings is demanding repayment of a $45 million loan it made last year citing weinstein's dismissal as a, quote, material adverse change we reached out to a.i. international holdings and the weinstein company, but have not heard back yet back to you. >> julia boorstin in los angeles. the united states failing to qualifyfor the world cup in soccer for the first time in three decades. former u.s. men's national team player and espn soccer analyst taylor twillman had a lot to say about that
2:27 pm
>> that should have never happened with the billion dollar plus that is going into the major league soccer and youth development. that should have never happened! ayr twellman, what's missing in u.s. soccer and where do they go from here
2:28 pm
2:29 pm
2:30 pm
i'm sue herera here's your cnbc news update at this hour. the boy scouts announcing plans to admit girls into the cub scouts starting next year and to establish new programs for older girls that will enable them to earn the highest rank of eagle scout. the boy scouts' board of directors unanimously approved the plan. at least two suicide bombers struck outside the headquarters in central damascus, killing one person and wounding six. the state news agency says the two attackers tried to storm the police command center and the third attacker was encircled by police and he was forced to blow himself up pope francis appealing for world peace during his weekly general address. he said that prayer can help build non-violent communities, and he noted that today is the international day for disaster reduction. meantime, russian president
2:31 pm
putin, a dog lover look at that puppy, receiving a top-breed puppy as a belated birthday gift from turkmenistan's president putin gave the puppy a little kiss on the forehead there it's a central asian shepherd. the two leaders were holding talks in the black sea resort of sochi. so now we all know what a central asian shepherd actually looks like back to you. >> at least in puppy version what if putin doesn't want a dog? >> what happens to the dog >> i don't know. i'm sure it will be a very well-behaved dog if vladimir putin is your owner. >> if it's big move, putin can ride it. >> that's right, he could! >> shirtless >> he could, brian >> the oil market closing for the day, jackie, deangeles and cnbc commodity desk trying to stifle a laugh it's okay. it's wednesday >> it's wednesday, brian we're watching crude oil today closing higher than $51 and getting a little bit of a bounce and holding over the critical 50 level and the recession high was
2:32 pm
$51.42 and that's the highest we've seen since october 2nd and definitely momentum here the support is coming from opec. the cartel raised its demand forecast by 230,000 barrels per day by 2018 and that's encouraging and it set its september output went up to 32.75 barrels per day and that was higher than the estimates that we reported earlier this week the demand increase is good and the production figures less so the eia releasing figures that were more bearish. it's saying that crude production in 2018 will go to.92 million barrels a day. 9.6 is the most recent peak. so expect to see an eclipse there. their demand projection also a little bit better than expected. so all of these things together giving us a mixed session. the support is there, but there's still so many reasons that we could go lower if that demand doesn't manifest, it could be a big problem, guys >> thank you very much, jackie deangeles. when it comes to retail, we know teens are a fickle bunch so what do they like right now
2:33 pm
where are they spending their money right now? courtney reagan has clues. >> don't envy retailers that are trying to please the teenager, it's got to be hard and each beyond what's hot and what's not, there is some concern that overall spending is falling for the group. teens retail spend is estimated around $830 billion a year and piper jaffray's biannual team survey shows the group spending 4% less rid now than they were at this time last year and more than 6,000 teens answered the survey from around the country and it's starting to show cracks in athleisure apparel trends fewer teens choosing athletic brands as the top brand choices for clothing this time around. specifically, preference is waning for nike. it's still the most preferred apparel brand, but it's losing share as arc kid as gains strength american eagle, however, holds the number two spot and it has actually grown in share with the teens. underarmour is the number one
quote
2:34 pm
brands male teens is an old brand they no longer wear. that's not good. that got an estimate decrease and a downgrade from piper jaffray today as a result. if you want to take a look at the upper-income females it got only one vote, underarmour, from 6,000 total teens as a preferred brand. ralph lauren falling out of favor and ugg dropped out of the top ten shoe brand for the first time in ten years. vans owned by vf corp breaks into the top ten clothing brands for the first time and is the second favorite footwear brand again this year, but with the higher share than last year. supreme may not be familiar, but this one is landing in the top ten as the favorite clothing brand and tommy hilfiger cracks the top 20 for the first time at least for the guys. >> gosh, i feel old. i don't know supreme >> yeah. >> what's interesting is they just released the reports and they've confirmed that carlisle has made an investment we don't know the exact amount and it's somewhere around $500
2:35 pm
million and $600 million it's a streetwear brand. >> and underarmour has gone from new brand to old brand. >> really fast especially for the guy, but the upper-income females only getting one vote as their preferred apparel brand. it's pretty notable. >> court, stick around our next guest is the ceo of one of the largest mall in the u.s he has 121 malls predom minutely in the southeast and some of the iconic properties are in nashville, greensboro, atlanta, saisht louis and kansas city, kansas and stephen leibovitz is president and owner of cbl >> thank you for having me. >> you're mostly class b, small properties, correct? >> we're in middle markets and our malls are the dominants and we like to refer to them as the a-malls and b markets, and they are dominant in those markets because they have the largest square footage and the most number of retailers and the highest traffic. >> in terms of your anchor
2:36 pm
tenants, who are they and are they having problems i mean, i saw a list that was probably a year old or so, any it listed footlocker, dick's among some of the top tenants and l brands and all those brands are having difficulties >> we have a wide variety and our largest retailers are l brands, footlocker and finishline and gap those are the largest specialty stores and in terms of the anchors we have dillard, j.c. penney, macy's nordstrom and we run the spectrum and the beauty of the business is we're not in retail and we're in real estate and when some stores aren't doing well and we're an owner of a shopping center and not an owner of a specific store. >> how is the vacancy rate right now and the least rates are. are the tenants asking for concessions if they leave or the co-tenancy clauses what's going on with the contracts with the retailers
2:37 pm
>> the tenants are always looking for concessions. it's a negotiating business. we're always negotiating with them and this year we've had 102 store closings out of 7400 stores in the portfolio. so that's a little more than -- it's about one and a half per property and we wish there were no store closings, but in the grand scheme of things and are they saying, stephen, just to follow up, if you don't make these concessions then we will close. >> well, if a retailer is in bankruptcy or struggling we've been long-term partners in the business and this is the 40th year as a company, so we are in this for the long term and the retailers are our partners and we want them to succeed and they want us to succeed and there's always give and take i don't want to make it sound like it's perfect and it's beautiful. it's a challenging year and no question and i'll be the first to admit that, but the sky isn't falling and we feel really good about the prospect >> are you comfortable with the size of your footprint
2:38 pm
in other words, do you have the right amount of square footage do you wish you had less square footage? is there anything you can do on either side of that equation either to increase or right size >> we've been doing a lot of that, and you've got to look at specific categories. so we bought two stores from sears in 2013. we concerted those and we opened restaurants and we opened entertainment and other types of uses so we bought five sears earlier this year. we bought -- you said you bought them >> we bought them under the sale lease back and we're working on a redevelopment plan and sears will develop into a smaller store which is their vision going forward. so with certain retailers in categories, yes, there's too much square footage and we have the ability to bring in other uses and we're doing a lot of restaurants and a lot of entertainment businesses, fitness, dine-in theaters and all of that is where the growth is and certain categories are shrinking. >> they had a quarterly note out just yesterday, and said that
2:39 pm
cbl is one of the more susceptible mall portfolios to weakening fundamentals if pressure continues and they point out there is a 26% short interest on the stocks and investors are shooting against the performance of the stock are you seeing an improvement because a lot of the data points coming out of the retail sector are pretty dire right now. >> this, like i said earlier, this has been a tough year and we've had high-profile bankruptcies store closings, but we're going to end the year between 93% and 94% occupied and that's pretty strong and from a corporate point of view, we've enhanced our balance sheet and we've got less leverage so we've upgraded the quality there we've sold over 20 properties from our portfolio over the last few years. >> you're prepared >> yeah. we're prepared long term to deal with this, and sure, people are betting against us, but obviously our management owns 12% of the company
2:40 pm
we are big fans and we think wo we've got a big future. >> by the way, you are closing on thanksgiving, and i can't speak for anybody else here. tyler, what do you think >> i'm glad you did it >> no stores open on thanksgiving >> i like that i know it hurts sales, but i think it's a family day. >> i like that >> we've got -- so we have over 100,000 people that work in our malls or at our malls and employees and that's a lot of people that get to spend the day with their family. >> there are plenty of other days to shop >> go online everyone has a direct consumer strategy. >> and we found that last year it didn't make a difference. we did the same business over friday, saturday, sunday as we had that thursday arch so it's a great move across the board. we're really proud that we can do it. >> thank you so much >> appreciate it we have a news alert now from washington, where else? and kayla tausche has the details. >> tyler, we have expected that those executives from facebook, google and twitter would testify on november 1st, but nbc's casey
2:41 pm
hunt is now reporting after speaking to the top democrat and republican on the house intelligence committee that facebook will be releasing the russian ads that are the focus of these investigations both on the house and senate side, but that it will likely not come before that november 1st hearing date we'll bring you more as we have that, but facebook coo sheryl sandberg is on the hill today and tomorrow meeting with leaders in both chambers and this is an interesting development as the company tries to grapple with its role in the russian interference in the 2016 election back to you. >> kayla tausche in d.c. retail stocks near the session lows despite a retail etf ticker xrt down more than thai percent on pace for the third day. among the laggards, dick's sporting goods tracking its worst day and sally beauty down 8% those shares have more than doubled their 30-day average volume of 1.8 million shares a day trading over 4 million
2:42 pm
shares just today, that stock on pace for its worst day, guys since february 2nd back to you. a tragedy in trinidad, that's what we're calling it the u.s. men's soccer team failing to qualify for the world cup. former national team player taylor twellman will join us to talk about the loss. there is a lot of money tied up in the broadcast rights of the world cup, obviously check out shares of fox taking a big hit today because fox agreed to pay $400 million for the english broadcast rights to that 2018 world cup in russia, outbidding espn by $200 million. that investment weighing on 21st century x ghforit now down about century x ghforit now down about 3%ffice. even love it. and today, you can do things you never could before. you're working in millions of places at once with iot sensors.
2:43 pm
analyzing social data on the cloud to create new designs. and using blockchain to help prevent fraud. so get back to it and do the best work of your life.
2:44 pm
2:45 pm
♪ >> welcome back to "power lunch. take a look at shares of ge. j.p. morgan says the chances of a dividend cut are, quote, increasingly likely. a ge spokesperson told cnbc that the dividend remains a, quote, top priority with miller thaiback and larry mcdonald and matt maily, listen, ge honestly, the stock i call it
2:46 pm
the black diamond company because the stock chart looks like a steep ski slope lately, but does that make it a good value? you want to buy low, right and the dividend, and the saying they're not going to cut it, leaves a cloud overhanging on the stock and as you mentioned, you'll look at the chart and in june it broke below its upward sloping trend channel that goes all of the way back to 2009 with the credit crisis and it's broken well below it, and now we're slightly breaking the 2015 lows which gives us a major lower low which nobody likes to see. if they come back in the next day or two and really defend it, maybe we can see a nice bounce off of the key support level and this will be a headfake, but the break below the 2015 lows and this is a big overhang and if we don't get any defense of that
2:47 pm
dividend thing it will trade into the high teens. >> wow larry mcdonald, are you that negative on ge >> in the capitulation model we're getting a very solid score here and if you look at the amount of shares that have been traded in the last couple of months because of the buffett departure plus all his pilot fish, this is just a fantastic capitulation, and i think looking forward you have to look at earnings on the 20th of october. >> so they're not going to say much on the dividend now and they'll wait until two big public settings. so the stock likely has a capitulation bounce here and a very high probability bounce in the next 48 or two trading days, and then you probably run into those two high-profile management sessions. >> larry mcdonald, the seven-measure capitulation model showing capitulation or more selling, i would say, maybe not
2:48 pm
capitulation negative views there on ge for more trading nation go to our website tradingnation.corks nbc.com. oh, the agony. the u.s. men's soccer team failing to qualify for the 2018 world cup. former national team player taylor twellman joins us to talk about the loss and his rant, by the way, is going viral. >> and now your trading nation stats of the day and a word from our sponsor.
2:49 pm
2:50 pm
2:51 pm
every single one of those players. nightmares for the rest of their lives because this is an utter embarrassment. with the amount of money that is in major league soccer and in this sport, you can't get a draw a tie? against trinidad >> that was taylor of espn following the epic loss of the
2:52 pm
u.s. men's soccer team to trinidad last night. if you're not a close soccer follower, here's the point, the u.s. men's team failed to qualify for the world cup, biggest sporting event in the world for the first time in 30 years. fokts sports lightly among the biggest losers taylor is joining us now by phone. it's brian and melissa and tyler. thanks for joining us. i was on morning joe this morning, had my own rant on this topic. tweeting about it last night a lot of viewers may not be big-time soccer fans tell us though what -- how big of a deal is this? >> oh, that's a good question. i look at it as just, it's a monumental error you know, saying it's just the blemish, nothing needs to be changed. i unequivocally 100% disagree. when you are spending millions, almost a billion dollars in just
2:53 pm
player development over the last eight to ten years, you can't tell me right now that this is okay and it raises the question, most listeners and viewers are going to be saying, well, i only tune in every four years. is that really what the goals is qualify and hope for a miracle because if that's really the case what are we doing? >> what are we doing to your point, this is a nearly billion dollar industry. we have had the president of major league soccer on this program a number of times. he knows that we are soccer fans that is booming. we've got major league soccer booming. we've got -- millions of kids playing, one of the biggest countries in the world, by the way, our women not only qualify every time but pretty much win the world cup every single time -- >> we do -- >> what's wrong? >> yeah, but listen, for those of us in the soccer world, if you've watched the women's game over the last couple of years, the women are in trouble because the france's of the world are
2:54 pm
catching us. what i mean by that is there is a tactical aspect of the game. there's a culture aspect of the game that i'm not sure the united states is fully gotten that yet let me ask you guys this, the united states men's national team, how many people around their -- wherever they're living are going to give them trouble are going to give them problems? in the united states, it is a fundamental issue problem for us here's what i mean by that, we reward immediate yokerty in american sports. the "new york times" are 0-5 what is everyone talking about the rebuild. you get a number one draft pick. the rest of the world does it the opposite when you win you get paid, when you lose, you get relegated, when you lose, you lose jobs, there's accountability, there's pressure, we have none of that in major league soccer in u.s. soccer and player development. and a big issue is coaching. if you guys wanted to be an
2:55 pm
alines coach in u.s. soccer, it's going to cost you 10 x what it costs in europe and the the rest of the world. that's a fundamental problem >> so -- you're talking about not the coach of the national team, bruce arena who i assume you have played for because you had a u.s. national team career and he has been, until last night, correct me if i'm wrong, the most successful coach in u.s. team history. so you're talking about coaching at the developmental level >> yeah, you could have the best coach in the world right now come to this united states, they're not good enough. players aren't good enough and after 2014, here at espn we were talking about the world cup and talking about bridging the gap for the united states against the belgium. and the columbians and the argentinas of the world, now you guys are asking me questions three and a half years later about trinidad and guatemala we lost, and people have forgot this, the general sports fan has no idea what i'm talking about and let me reiterate this. the last two olympics, the men
2:56 pm
have not qualified that tells you right there that in their confederation, in their renal, the 23, the 29-year-old players, they weren't good enough so guys, signs were there. >> strong words, strong statement, we're all letting i sink in. unfortunately, taylor twellman, we appreciate it, thank you. check please is next [vo] when it comes to investing,
2:57 pm
looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. directv has been rated #1 in customer satisfaction over cable for 17 years running.
2:58 pm
but some people still like cable. just like some people like banging their head on a low ceiling. drinking spoiled milk. camping in poison ivy. getting a papercut. and having their arm trapped in a vending machine. but for everyone else, there's directv. for #1 rated customer satisfaction over cable switch to directv. call 1-800-directv. i can't wait for her to have that college experience that i had. the classes, the friends, the independence. and since we planned for it, that student debt is the one experience, i'm glad she'll miss when you have the right financial advisor, life can be brilliant. ameriprise
2:59 pm
check please carl's jr. apparently deciding it is like pursue a sale and they're just putting it right out there on twitter that they'll only accept one bidder carl's jr.'s official twitter feed writes, hey amazon, we know you like buying companies, you know who you should buy next us amazon you. should buy. us carl's jr. and pitched every hour for the next 24 hours. wasn't the former ceo of carl's jr. the guy that -- >> yeah. >> that's fake news because amazon rarely buys anybody they're stingy >> coach meantime, announcing that it is changing it's name to tapestry and by the way, we put a twitter poll up asking people if they like the new name or loathe it. basically it came out to be a head scratcher the margins of you said head
3:00 pm
scratcher, i also voted head scratcher. it makes no sense to me. >> even if you don't care about soccer, the world cup could have been a chance for everybody, red, blue, politics side to come together for a nation far common cause and now we don't have. >> so well >> thanks for watching "power lunch. "closing bell" starts right now. ♪ ♪ ♪ where you lead, i will follow ♪ ♪ anywhere that you tell me too ♪ >> that's not the original version. what is that what is a country western version? what the heck is that. >> this selection from carl king's tapestry album which you may know what that's about now >> 1971. i was -- you have no idea how influential that album was when it came out. >> i saw the broadway show which is fantastic it's fantastic mom, this is for you like her favorite of all

76 Views

info Stream Only

Uploaded by TV Archive on